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U.S. Senators Debbie Stabenow (D-Mich), Chairwoman of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, and John Boozman (R-Ark), Ranking Member, have urged USDA to use its authorities under the Commodity Credit Corporation (CCC) Charter Act to support opportunities for U.S. farmers.

In a letter to the USDA Secretary Tom Vilsack, Stabenow and Boozman highlighted the need to invest in trade promotion and in-kind international food assistance, both of which support American farmers and producers.

Good for U.S. Farmers

“As Congress works toward reauthorizing critical programs in the Farm Bill, we continue to hear from organizations representing the vast majority of U.S. agriculture about the need to strengthen trade opportunities, increase revenue streams, and help producers grow and thrive in a global economy,” the Senators wrote. “We believe that resources available under the CCC can support similar efforts to open access to markets and promote American-grown products abroad.”

“The letter is intended to convey the strong, bipartisan support for additional market promotion funding but also reflects the challenge of identifying new funding resources for a broader Farm Bill reauthorization,” said Tyson Redpath with The Russell Group, a bipartisan government relations firm that represents the Coalition to Promote U.S. Agricultural Trade, in which U.S. Wheat Associates (USW) is a member.

“There is also bipartisan support for critical U.S. Department of Agriculture international food assistance programs,” the Senators continued. “We urge you to explore using CCC resources to advance food assistance initiatives, which will both address humanitarian needs abroad and support American farmers.”

Chinese wheat foods seminar

USW’s work providing technical support to overseas wheat buyers and end product processors like this healthy Chinese wheat food baking seminar in Taiwan is funded by export market development programs administered by USDA-Foreign Agricultural Service. Congress approves program funding through federal “Farm Bill” legislation.

Good for Importers of U.S. Wheat

“We were quite pleased to see the leaders release their letter to Secretary Vilsack,” said USW President Vince Peterson. “Our friends at the National Association of Wheat Growers are strong advocates in Congress for increased export market development program funding. And the use of CCC funds to enhance both export marketing activities and food aid programs would be to the great benefit of U.S. agriculture and the overseas wheat buyers with whom we work.”

This request from the Chairwoman and Ranking Member comes as the Committee continues working to develop a Farm Bill this year. The full text of the letter can be found here.

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As the geopolitical conflict between Russia and Ukraine comes back into focus following the attacks on port infrastructure in the Ukrainian Black Sea ports of Odesa, Chornomorsk, and the terminals along the Danube River, wheat market volatility remains an ever-present risk.

Despite the recent swings, export basis trends can help provide clues to potential buying opportunities for U.S. wheat classes. In recent months, we have seen Pacific Northwest (PNW) hard red spring wheat (HRS) export basis erode from $1.75 per bushel ($64.30 per metric ton) in November 2022 to $0.80 ($29.40) in July 2023. Considering the recent drifts, this article will investigate the PNW HRS basis trend and provide additional context around the weakening basis.

A line chart showing export basis in dollars per bushel of wheat indicates basis has declined $1.75 per bushel since December 2022.

PNW HRS basis has drifted down since the start of 2023, recently hitting lows not seen since 2007, hovering 90 cents below last year’s level. Below average basis poses a unique opportunity for those interested in purchasing PNW HRS. Source: U.S. Wheat Associates Price Report.

Slow Demand Meets Seasonal Weakness

Otherwise known as the difference between the free on board (FOB) cash price and the futures price, export basis encompasses transportation costs, storage, and supply and demand at the regional level (e.g., farmer sales, local demand), and can fluctuate based on seasonality. In the pre-harvest months, basis generally weakens as the market looks to the influx of new crop stocks. Though a weaker basis is common for this period, unique to this year, the pace of farmer selling has remained slow. Throughout 2023, exporters noted low farmer sales, and USDA’s June Grain Stocks report noted on-farm stocks increased 34% from the year prior. In the last few weeks, farmer sales increased with the increased volume helping drive down basis.

Meanwhile, demand for U.S. wheat has also been relatively light. In 2022/23, commercial U.S. wheat sales were 20.7 MMT, down 4% from the year prior. So far in 2023/24, the U.S. export pace remains slow, tracking 32% behind last year at the same time.

The combined impact of seasonal weakness, the release of farmer-held stocks, and slow export demand have quickly eroded basis. Last week’s basis level of $0.75 ($27.56) signifies the weakest PNW HRS basis since July 2007. For this time of year, the current basis level is 51% below the ten-year average and down 90 cents per bushel from last year. The historically low basis level presents an opportunity for U.S. wheat importers to make purchases of HRS from the PNW or to lock in a low basis contract.

A line chart showing market volatility related to geopolitical tensions in the U.S. wheat futures markets and prices.

Wheat futures continue to fluctuate based on the global supply and demand situation and the erratic influences of geopolitics, weather. The most recent example is the response to the airstrikes in Ukraine last week. CBOT futures closed limit up at $7.57/bu; however, by the end of the week, CBOT futures were down 53 cents at $7.04/bu. Source: U.S. Wheat Associates Price Charting Tool.

With Proper Risk Management Opportunity Awaits

Despite the historically low basis, volatility presents a risk in the market. On July 24, Chicago Board of Trade (CBOT) wheat futures were limit up in response to the airstrikes in Ukraine, closing at $7.57/bu; however, by the end of the week, CBOT futures were down 53 cents at $7.04/bu.

Every marketing year presents new challenges and opportunities for buyers of U.S. wheat, and this year is no exception. Markets are volatile, but unique buying opportunities continue to arise. With proper risk mitigation, U.S. wheat importers can capitalize on opportunities for purchasing U.S. wheat and maximize the value of U.S. wheat classes, even in unpredictable times. Contact your local U.S. Wheat Associates office for more individualized information on risk mitigation strategies for your business and opportunities for U.S. wheat.

By U.S. Wheat Associates (USW) Market Analyst Tyllor Ledford.

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Between ceiling-high stacks of seed and against a backdrop of multi-colored combines, House Agriculture Chairman Glenn ‘GT’ Thompson (PA-15) and U.S. Representative Tracey Mann (KS-01) conducted a food and agriculture listening session in early May. The remarks revealed support for the future of market development programs, food aid assistance and the continued reliability of the U.S. wheat supply.

The listening session took place at the farm of Justin Knopf, immediate past president of the Kansas Association of Wheat Growers. Trade teams may recall visiting this machine shed in Saline County, where farmers, ranchers, agricultural producers and leaders in Kansas agriculture gathered to provide their comments and questions. The current version of the Farm Bill expires on September 30, 2023, so this session is one of many happening across the country.

Photo of Kansas farmer Justin Knopf in his wheat field examining plant leaves for disease pressure with the front of a self-propelled application machine in the background.

Kansas Farmer Justin Knopf hosted a Farm Bill listening session in early May. “When we think about being the most reliable, consistent supplier of grain around the world to our international customers, crop insurance is an important part of our ability to do that,” Knopf said.

Farm Safety Net

“We heard a lot about the importance of the U.S. farm safety net from a production standpoint to feed not just consumers here in the U.S., but around the world,” said USW Vice President of Policy Dalton Henry.

Behind the shed, Knopf’s wheat crop is in better shape than many, but still below average. Knopf started his welcome by recognizing that thousands of Kansas wheat acres will not be harvested due to extreme drought conditions – a point repeated by numerous commentators. For these producers, crop insurance is a vital Farm Bill program, benefiting both farmers and customers that rely on a steady supply of U.S. wheat.

“When we think about being the most reliable, consistent supplier of grain around the world to our international customers, crop insurance is an important part of our ability to do that,” Knopf said. “Because in the wake of a disaster, it allows us the means to move forward in putting in that next crop that hopefully will fare better the following year.”

The Farm Bill provides direct support to overseas markets through food aid assistance, which both lawmakers and commenters expressed support for during the listening session. Kansas farmers, in particular, feel a strong tie to programs like USAID Food for Peace, the roots of which originated in Kansas.

“I’m very proud of the legacy of Food for Peace and food aid,” Knopf said. “We can stand as a country that is here to support people around the world that are experiencing hard, difficult times and provide food as a beacon of hope and freedom.”

Vital Export Market Development

Both lawmakers also recognized the importance of two other internationally focused Farm Bill programs – the Market Access Program (MAP) and the Foreign Market Development (FMD) program. These public-private partnerships provide competitive grants for export development and promotion activities to non-profit farm and ranch organizations, like USW, that contribute funds from checkoff programs and industry support.

Both programs need more investment to strengthen their effectiveness as MAP’s authorized funding has not changed since 2006 and FMD funding has remained the same since 2002. Congressman Mann is helping lead the effort to double the funding for this pair of agricultural export market development programs administered by the USDA’s Foreign Agricultural Service (FAS). He was a lead sponsor for the Agriculture Export Promotion Act (H.R. 648), which is currently making its way through the U.S. political process, along with the Senate equivalent – the Expanding Agricultural Exports Act (S. 176).

In the end, export promotion programs, food aid and crop insurance were just a few topics discussed at the Kansas listening session. Still, supportive comments from lawmakers and Kansans alike will help ensure the next Farm Bill supports not only U.S. farmers, but also their global customers.

By Julia Debes

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Roy Chung has been teaching U.S. wheat’s international customers about the value of frozen dough for more than 30 years.  During the COVID pandemic, many of his points about frozen dough’s importance in the marketplace were confirmed, as bakeries that were using it were able to continue operations despite staffing shortages. Chung, a U.S. Wheat Associates (USW) bakery consultant, predicts that frozen dough demand around the world will continue to grow, which is good news for U.S. hard red spring (HRS), hard red winter (HRW) and soft white (SW) wheat. In this short video, Chung provides an overview of frozen dough and its importance to businesses and bakeries that purchase U.S. wheat.

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Early spring – before the harvest of winter wheat and the planting of spring wheat – is a perfect time to highlight tools U.S. Wheat Associates (USW) provides to inform U.S. wheat farmers and their customers around the world.

It’s also a good time to remind readers of this blog how to access those USW tools.

USW Price Report       

USW gathers information from market sources to compile timely reports on prices and export sales of U.S. wheat. The USW Price Report, which is sent to subscribers each Friday, also includes updates on market conditions and input from people involved in each step of the wheat trading process.

Monitoring the Chicago Board of Trade (CBOT), Kansas City Board of Trade (KCBOT) and Minneapolis Grain Exchange (MGEX) wheat futures is only part of the process.

“A huge component is talking with the grain trade, farmers and other industry representatives to get a firsthand account of what is going on in the market and how it is impacting wheat prices,” explained USW Market Analysis Tyllor Ledford, who is responsible for the USW Price Report. “By reaching out to each segment of the trade process, I try to get as balanced view as I can of what is going on in the wheat marketplace and really understand what is driving movements.”

Click HERE to sign up to receive USW’s Price Report.

Whether it's harvest season, planting season or the brief windows of time in between, USW provides several vehicles and platforms to keep wheat farmers and customers informed.

Whether it’s harvest season, planting season – or the brief windows of time in between – USW provides several products and platforms to keep wheat farmers and customers informed. All you need to do is sign up.

USW Commercial Sales Report

While the USW Price Report includes an update on commercial sales of U.S. wheat, more detailed information is available in the USW Commercial Sales Report, published each Thursday on the USW website and also compiled by Ledford.

Using data sourced from the USDA Foreign Agricultural Service Weekly Export Sales Report, the Commercial Sales Report contains wheat export sales-to-date by country and class for the current marketing year compared to the previous marketing year on the same date. The report also includes a 10-year commercial sales history by class and country.

USW Supply and Demand Report

USW’s Supply and Demand Report is published monthly on the USW website. Based on USDA’s World Agricultural Supply and Demand Estimates (WASDE), it includes U.S. wheat supply and demand summaries by class, as well as market factors and country- and region-specific export history.

Harvest Reports

Beginning in May and running through mid-October, USW and partner organizations compile updates on crop quality, harvest progress and crop conditions for hard red winter (HRW), soft red winter (SRW), hard red spring (HRS), soft white (SW) and durum wheat.

Each week, the USW Harvest Report is emailed to those who have signed up to receive it.

“The weekly harvest report is an example of how we keep everyone in the industry regularly updated on the wheat crop and current market conditions,” said USW Vice President of Programs Erica Oakley, who handles compilation of the Harvest Report. “We gather information about each class and each state that is in the process of harvest. It’s a very helpful way to monitor production throughout the harvest season.”

Click HERE to sign up to receive USW’s Harvest Report.

Wheat Letter

If you are reading this, you likely already subscribe to USW’s Wheat Letter, a blog and news source that focuses on issues facing U.S. wheat farmers – trade policy, crop quality and other pertinent wheat industry news.

The blog is updated regularly throughout the week, with a newsletter-style collection of those blog posts emailed to subscribers every other Thursday.

Click HERE to sign up to receive USW’s Wheat Letter. You can also pass this link along to someone who would be interested in subscribing.

Articles of Interest

Early each morning, USW Director of Programs Catherine Miller compiles Articles of Interest, a daily news report by conducting web searches to identify industry-related news articles. The goal is to help keep everyone updated on issues and events that may affect the U.S. wheat industry.

“It’s a news brief that highlights a variety of topics, including trade policy issues, supply and demand situations, wheat research and breeding crop conditions and news that involves the people who work in the industry,” said Miller. “We see it as a food way to start the day with the latest news and serves as a platform to share important stories an articles from all over the world.”

To be considered for the USW Articles of Interest mailing list, email [email protected].

Social Media

The newest platform in USW’s social media offerings is the USW YouTube Channel, which holds a growing number of USW-produced videos featuring USW staff, activities and partners.

USW is also has its own Facebook page, Twitter Account and Linked-In profile, each used to share information and quickly and efficiently.

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Taeyoung Grain Terminal’s CEO took time from his busy schedule March 8, 2023, to meet with U.S. farmers from Idaho, Montana and Nebraska and explain what happens when a shipment of imported U.S. wheat arrives in South Korea (photo above).

It was a fitting way for the U.S. Wheat Associates’ (USW) 2023 North Asia Board Team to wrap up its 10-day exploration of top Asian markets.

“We’ve been able to see every step, where demand for our wheat is created at the consumer level, to the baking process where flour is used as the ingredient, to the milling process where flour is made with our wheat, and now to the import process, which is how our wheat gets to the market in the first place,” explained Bob Delsing, a Nebraska wheat producer and Nebraska Wheat Board member.

Delsing took note of another important detail, too.

“The other farmers and I on the trip really noticed the respect people have shown us,” Delsing added. “The end of the Korea visit was a perfect example. Tae Hyun Yeo, who leads grain terminal as CEO, seemed happy to spend time with us and get to know us. We saw that over and over on this trip.”

Along with Delsing, team members are Bill Flory, of the Idaho Wheat Commission (IWC); Keven Bradley, of the Montana Wheat and Barley Committee (MWBC); Kent Kupfner, Executive Vice President of MWBC; and USW Director of Communications Ralph Loos.

USW Country Director Rick Nakano discusses Japan's milling and baking industry to members of the 2023 USW North Asia Board Team.

USW Country Director Rick Nakano discusses Japan’s milling and baking industry with 2023 USW North Asia Board Team members (l to r) Bob Delsing, Keven Bradley, Bill Flory and Kent Kupfner.

Representing the USW Board of Directors, the team arrived in the Philippines on Feb. 28, then made stops in Japan and South Korea to meet customers of U.S. wheat. A return to the U.S. is scheduled for March 10.

“It was exciting to have the Board Team in Tokyo, and in fact it is the first team we’ve hosted since before the pandemic,” said USW Japan Director Rick Nakano. “The goal was to give the farmers a look at the market and how USW works to create demand for U.S. wheat. Our customers were eager to meet face-to-face with this team and get a perspective from wheat growers. Our customers also wanted to share what they need to help their businesses. We had some exceptionally good discussions.”

Compliments on Quality, Questions About Supply

Two overlying themes dominated each meeting between the USW team and flour millers in each of the three Asian markets: quality and supply.

“Our members are always very satisfied with U.S. wheat’s quality – never a question,” Jeong-seop Park, director of the Korea Flour Mills Industrial Association (KOFMIA), offered during a meeting between the team and his organization. “We have come to rely on that quality and we wish to show appreciation for the work U.S. farmers do to assure it in every crop.”

The 2023 USW North Asia Board Team meeting with members of the Korean Flour Millers Industrial Association in Seoul, South Korea

The 2023 USW North Asia Board Team met with members of the Korean Flour Millers Industrial Association at the KOFMIA headquarters in Seoul, South Korea.

Like other customers the USW team met in the Philippines, Japan and Korea, KOFMIA asked each farmer about the status of his current wheat crop and projections for 2023 success come harvest time.

Questions in each market were centered on the supply of wheat from the United States.

“Those are difficult questions to answer this time of year because we won’t know about our winter wheat crop until later in the spring, but I feel they were satisfied with our answers and I feel they understand,” said Bradley, who has roughly 5,400 acres of hard red winter wheat (HRW) wheat in the ground on his Montana farm. “This was my first visit to a foreign market, so I learned a lot about our customers in each of the countries we visited. It’s an eye-opening experience and you see the value of the U.S. Wheat Associates offices in each market. The [USW] staff does a great job interacting with our customers.”

In addition to the Taeyoung Grain Terminal in Pyeongtaek , the South Korea leg of the journey included a tour of the Sajodongaone Dangjin Flour Mill. The day prior was packed with productive meetings in Seoul with Agricultural officials from the U.S. Embassy, the KOFMIA members, Samhwa Flour Mills, Daehan Flour Mills and the CJ Cheiljedang Corporation.

Members of the 2023 USW North Asia Board Team toured the Sajodongaone Dangjin flour mill March 7, 2023.

Members of the 2023 USW North Asia Board Team toured the Sajodongaone Dangjin flour mill March 7, 2023. Here, USW Seoul Food/Bakery Technologist Shin Hak “David” Oh translates the mill manager’s explanation of this display of  flour streams the mill creates for Korean bakeries.

Japanese Stress ‘Trust and Understanding’

In Japan, the farmers met with the Japan Flour Millers Association (JFMA), as well as Agricultural Affairs and Agricultural Trade Offices of the U.S. Embassy and Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF). A tour of the Nippn Corporation’s Chiba Flour Mill provided insight into Japan’s use of U.S. wheat.

JFMA members pointed to the long relationship Japanese millers have had with U.S. producers. Recent high prices for U.S. wheat have been a concern, along with future production. However, officials made it clear they understand how weather affects the wheat crop and that they trust U.S. farmers.

JFMA Executive Director Yasuo Sasaki sought input from the USW Team about their farms and the business challenges they face.

In Tokyo, the 2023 USW North Asia Board Team met with members of the Japan Flour Millers Association.

USW Tokyo Country Director Rick Nakano (far right) introduces the the 2023 USW North Asia Board Team to members of the Japan Flour Millers Association.

“High-quality wheat is what we need in Japan to satisfy our customers and consumers and we also need a reliable supply of that high-quality wheat,” said Sasaki. “We know we can count on U.S. farmers to come through.”

Kupfner, a former wheat trader and grain company manager, went into the Japan part of the trip interested in growth opportunities for U.S. wheat.

“What we saw in Japan was a large urban population with an appetite for all kinds of food, but especially top-quality foods,” he said. “It’s a very consistent market and we want to maintain U.S. wheat’s place in it.”

Bakery Fair Connections

Highlights of the Philippines portion of the trip were a tour of the Gardenia Baking Facility and participation on the Filipino-Chinese Bakery Association’s 2023 Bakery Fair in Manila.

While not a “North Asian” market, the Bakery Fair provided a special opportunity for this Board Team. During the Fair’s opening ceremony, Flory was invited to provide remarks on behalf of the U.S. wheat industry. He shared his appreciation for the long relationship between U.S. wheat and the Philippines.

“From our farms to you” is the salutation Flory used to end his address to bakers and industry partners gathered. He shared his appreciation for the long relationship between U.S. wheat and the Philippines.

“We have had a long connection and we have had a long record of success together,” said Flory, a member of the USW Board of Directors and current Chair of the Wheat Marketing Center board. “We know that you rely on us to supply you with the wheat you need and desire. We want you to know that we take pride in that.”

By USW Director of Communications Ralph Loos

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Instead of asking “what’s in store” for crackers and cookies and other wheat-based snack foods in a post-COVID world, those in the U.S. wheat industry may want to ask the same question in a slightly modified way.

What’s in the store?

When COVID hit in 2020, international consumers had already been drawn to convenient foods that fit snacking lifestyles. Boxes of crackers were tucked into office drawers. Sleeves of cookies – often referred to as “biscuits” in some foreign markets – were slid into backpacks. While work routines and travel screeched to a halt, snacking habits sped forward. In fact, market research over the past year has indicated that, in many countries, on-the-go snacking is now preferred over traditional sit-down meals, especially by younger consumers.

This movement was aptly labeled “Snackification.” It’s changing the look of grocery and supermarket shelves around the world.

It’s also creating potential opportunities for U.S. wheat.

A 2022 survey by Euromonitor International revealed growing numbers of global consumers who look for snacks when shopping for food.

A 2022 survey by Euromonitor International revealed growing numbers of global consumers who look for snacks when shopping for food.

Snack ‘Em if You Got ‘Em

A Euromonitor survey conducted in 2022 showed South Asia as having the most robust snacking habits. About 45% of Vietnamese consumers surveyed indicated that when shopping for food, they “look for snacks that are convenient to take and eat outside the home.” Roughly 38% of consumers in the Philippines responded the same way. The survey revealed that in Latin America, Colombia had the highest number of outside-the-home snackers with 37%. Brazil was close behind at 36%.

As a comparison, and for perspective, fewer than 30% of consumers in the U.S. were focused on snacking while shopping for food.

Those who study global consumer trends expect the new generation of “snackificators” to munch its way into the future.

“Snack brands already had a large portion of the breakfast category – breakfast bars, breakfast cakes and pastries, and so on – but with consumer preferences changing during COVID, snack foods are now intentionally being positioned as meal replacements throughout the entire day,” offered Carl Quash, head of Snacks and Nutrition for Euromonitor International, an independent market research firm based in London.

Quash, who oversees packaged snack research and analysis in more than 100 markets worldwide, presented a webinar titled “Snackification: The Future of Occasions to USDA stakeholders on Jan. 30.

“Snacking is likely to increase as people become busier and more mobile, and as they feel more comfortable in traveling once pandemic fears fade for good,” said Quash. “Add to that the fact many consumers are now replacing meals with snacks – they snack throughout the day instead of sitting down for a meal.”

Market research has shown increased demand for snack foods, as the dining habits of global consumers continue to evolve.

Market research has shown increased demand for snack foods, as the dining habits of global consumers continue to evolve. USW continues to work with millers and bakers around the world to help in the development of new snack food products made with U.S. wheat and the improvement of existing products.

An Opportunity Knocking?

U.S. Wheat Associates (USW) recognized the new shift, even before snackification became a buzzword. USW’s offices around the world have long been involved in helping develop new snack products made with U.S. wheat, while also helping improve and promote existing products in all markets.

USW promotes the quality advantages of all six U.S. wheat classes. For snack foods, soft red winter (SRW) wheat and soft white (SW) wheat are most commonly used. But hard white (HW) wheat, hard red winter (HRW) wheat and hard red spring (HRS) wheat each are a quality ingredient – ether for snack foods and breads, or as part of flour blends to produce snack foods.

Wheat can also be used in other forms to make snack products. Flaked or puffed wheat is commonly used to manufacture breakfast cereals and cereal snack bars. Wheat bran is added to biscuits, cakes, muffins and breads to increase the dietary fiber content. Wheat germ can be added to breads, pastries and biscuits, or sprinkled onto yogurt, breakfast cereal or fruit dishes to increase the B-Vitamin, protein and fiber content.

USW also provides millers and bakers around the world technical support, including assistance in applying Solvent Retention Capacity (SRC) analysis to better predict performance characteristics of flour for cookies, crackers and cakes.

USW Bakery Consultant Roy Chung says consumers in Asia are more and more interested in quick, "on the go" foods - crackers, cookies and even sometimes as simple as a slice of bread with various toppings.

USW Bakery Consultant Roy Chung says consumers in Asia are more and more interested in “on the go” foods – crackers, cookies and even something as simple as a slice of bread with toppings.

A ‘Wheat Team’ Effort, Here and Abroad

“Snackification is definitely a thing in the Philippines, with bread being primarily used for snack foods,” said Joe Bippert, USW Associate Regional Director in South Asia. “All across the region, there are many, many products that have fallen into the snack category, some traditional like crackers and cookies, and some new. We are working with buyers, millers and bakers to make sure U.S. wheat is part of this snackification movement. We also continue to work with our partners to develop new products with U.S. wheat.”

One of those partners is the Wheat Marketing Center (WMC). Based in Portland, Oregon, the WMC regularly conducts research projects on snack food-related topics and wheat flour formulations. USW offices around the world connect snack food makers to the WMC, which works to develop new products to meet changing consumer demands for attributes such as lower sugar or salt, new flavors or even different shapes of crackers, cookies, cakes, breads and other snacks.

A Universal Phenomenon

No one seems to know who created the term “snackification,” but it began appearing in trade journals and food blogs a decade ago. As it did then, today it is used to describe a trend in which consumers snack in place of meals.

A Harris Poll survey commissioned by Mondelēz International last year polled consumers in 12 countries. It found that more than 55% of consumers “nibbled frequently throughout the day” in place of three standard meals, while 71% said they snacked at least twice each day.

Mondelēz International’s fourth annual “State of Snacking” report that “snacking increasingly replaces traditional meals in consumers’ lives.”

“Our State of Snacking report confirms that in these trying times, consumers around the world view their favorite snacks as affordable and necessary indulgences,” Dirk Van de Put, Chairman and CEO of Mondelēz International, noted in the report. “Snacking continues to be a way for consumers to connect or to enjoy a moment of delight in their day, further demonstrating our belief that every snack can be enjoyed in a mindful way.”

Looking back, it is clear urbanization drove snackification, Quash explained.

“Convenience and portability were key due to time pressures and a culture where people were constantly under constraints and were looking for foods to eat while on the go, foods they could eat on their way to the office or in the office while working,” he said. “Although people are still spending more time at home than they did pre-pandemic, snacking has become part of the routine.”

Crackers, Cookies, Biscuits . . . and Bread, Too

In some cases, foods just changed roles. One key consumer trend for U.S. wheat is the fact that breads that were once a big part of traditional sit-down meals are in some countries being used to anchor snack time.

Roy Chung, USW Bakery Consultant based in Singapore, said consumers in Asian countries are walking into retail stores looking for “simple and fast.” In many cases, how the foods are packaged is the biggest factor.

“When it comes to wheat, products range from simple slices of bread made into different types of sandwiches, or just plain bread spread with margarine and topped with sugar, then packaged to eat on the move,” Chung explained. “There are buns with different kinds of fillings, including steam-type buns. These are considered a snack that can fill you up without having to pause to prepare a meal. Grab it and go, as they say.”

Microwave-ready cakes and muffins, prepared in a paper cup and baked at the store, are common.

“In the cracker category, there is canned tuna or salmon or sardines packaged with a stack of crackers, which are popular for people taking a day trip or a bus ride somewhere and are eaten in place of lunch or even dinner,” said Chung. “All of these products are a showcase for the quality of U.S. wheat.”

Consumers shopping their local food store for snacks have other demands, too.

“The snacking trend remains based on convenience, but consumers around the world have become more focused on three things: mobility, value and health,” said Quash. “For the wheat industry, those are generally good things because wheat products tend to deliver on all three.”

By Ralph Loos, USW Director of Communications

 

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For six or seven seconds Monday afternoon, a group of wheat farmers from Idaho were able to imagine pushing 15,000 metric tons of wheat up the river. Maybe the wheat had been harvested in Idaho, or maybe it came from Washington or Oregon or Montana or even the Dakotas. Regardless, the imaginary barges under their control – the tugboat they each got to pilot was real, the barges not so much – were filled with U.S. wheat destined to be loaded on a ship headed for an export market.

The tugboat “driving lesson” was part of the Wheat Export and Marketing Workshop, an annual educational seminar and tour sponsored by the Idaho Wheat Commission and anchored at the Wheat Marketing Center in Portland, Oregon.

Here’s a brief video from the first day of the 3-day workshop:

 

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Bill Flory compared it to sliding his feet into someone else’s shoes. It’s a well-worn analogy but one that perfectly describes his experience during the recent flour milling course presented by the International Grains Program (IGP) Institute and Kansas State University (KSU).

“Getting a first-hand look at how wheat from my farm is milled to meet the needs and demands of customers is incredibly valuable,” Flory, a wheat farmer from Winchester, Idaho, and member of the U.S. Wheat Associates (USW) Board of Directors, said. “You analyze things from our customers’ points of view. The technical aspect of milling is something we as farmers — even those of us active with our state associations – rarely get to see. The knowledge we gained in the course can be shared with other farmers. And the things we learned will come in handy when we host trade teams from other countries or when we visit international markets to meet our customers.”

The IGP-KSU course conducted on the KSU campus in mid-December was considered a “deep dive” into flour milling. It was constructed specifically for producers who sit on the boards of state wheat organizations, as well as people who work for those organizations. Representatives from Idaho, Kansas, Oklahoma and Oregon engaged in the course led by Shawn Thiele, IGP Institute associate director and flour milling and grain processing curriculum manager.

Here is a short video featuring Flory’s take-aways from the three-day course:

 

 

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As U.S. Wheat Associates (USW) President Vince Peterson often says, at any given hour of the day someone, somewhere, is talking about the quality, reliability and value of U.S. wheat. Wheat Letter wants to share just some of the ways USW has been working recently to build a preference for U.S. wheat in an ever more complex world wheat market.

Lauding Nutritious, Delicious U.S. Baking Ingredients in China

USW Beijing participated in the USDA Foreign Agricultural Service (FAS) “Discover U.S. Baking Ingredients and Trends” hybrid virtual promotion in August 2022 (activity banner in the photo above). The purpose of this activity was to raise Chinese bakers’ awareness of the nutrition, health benefits, taste, and versatility of U.S. baking ingredients. The FAS Agricultural Trade Office (ATO) in Beijing and 10 USDA Cooperators with products ranging from wheat, dried fruit and nuts to dairy sponsored the activity partnering with the China Association of Bakery and Confectionery Industry.

USW Beijing staff with ATO Beijing at a U.S. Baking Ingredients event.

In-store promotion product 2 using U.S. dried blueberry and California almond slices and U.S. wheat flour

In-store promotion products using U.S. dried blueberry and California almond slices and U.S. wheat flour.

ATO Beijing reported the activity reached an audience of over 2.5 million netizens in China through social media platforms and

over 200,000 real-time viewers through livestreaming. There was also in-store promotions at leading bakery houses in Beijing where “consumers warmly welcomed the new products featuring U.S. baking ingredients,” ATO Beijing reported. Additionally, ATO Beijing strengthened connections with baking associations and businesses and generated trade leads with this activity. Read more here.

USW Beijing Technical Specialist Ting Liu and Marketing Specialist Kaiwen Wu played direct roles representing the essential quality of flour from U.S. wheat in the events. In the three full marketing years since the trade war ended, China has imported a total of more than 168 million bushels (4.58 million metric tons) of U.S. hard red winter (HRW), hard red spring (HRS), soft white (SW) and soft red winter (SRW) wheat, and have already imported almost 23 million bushels of U.S. wheat in the current marketing year that ends May 31, 2023.

Helping a Mexican Baker Expand Sales

In a technical support activity demonstrating to Mexican bakers how to extend their product lines using U.S. wheat flour, USW Mexico City enlisted Baking

U.S. Wheat consultant Didier Rosada

Didier Rosada

Consultant Didier Rosada to conduct an in-depth, multi-day workshop for one of the top three baking groups in Mexico. The commercial baker selected their best 25 master bakers to learn how to produce internationally recognized sourdough, functional breads, and savory breads for retail bakery sales. Rosada also demonstrated how to standardize pre-fermentation and natural sourdough processes to optimize production efficiency, products consistency, and quality in every store.

Baking is changing in a good way,” Rosada said. “At my bakery, my process is as natural as possible, with long fermentation time, like it used to be done, to bring back the flavor profile of a good bread, its shelf life and texture, etc. And U.S. wheat classes are perfect for that. I am using a flour that is almost 100 percent hard red winter or sometimes combined with hard red spring wheat.”

Mexico is the leading importer of U.S. wheat in the world.

Healthier Wheat Foods for Older Taiwanese Consumers

Chinese wheat foods seminar

Well-known Taiwanese chefs demonstrated healthy Chinese wheat food products .

USW Taipei collaborated with the Department of Food and Beverage Management of Shih Chien University (USC) to conduct workshops on Chinese Wheat Food for the Elderly in October 2022. Chinese wheat foods are popular but a survey by the university indicated that more than 60% of elderly Taiwanese are not satisfied with the healthiness of the products.

USW Taipei Country Director Boyuan Chen and Technologist Wei-lin Chou invited well-known Taiwanese chefs to teach methods for making healthy handmade noodles, pan-fried stuffed buns, silk thread rolls, and pan-fried sweet potato pastry as well as steamed breads using U.S. wheat white flour and whole wheat flour. The 40 participants included teachers, students, and long-term elderly care community volunteers who made pan-fried stuffed buns for the elderly just after the workshop.

U.S. wheat imports by Taiwan have averaged 43.2 million bushels (1.18 million metric tons) of HRS, HRW and SW per year since 2017/18.

Continuing Milling Education Interrupted by COVID in Korea

USW Seoul had started to educate Food Technology undergraduate students at Won Kwang University about the fundamentals of U.S. wheat and flour milling technology in 2018. USW Seoul Food/Bakery Technologist Shin Hak (David) Oh resumed that effort this year. The goal is to give these future industry professionals a better understanding of why flour products from U.S. wheat make superior quality ingredients for Korean wheat foods. The early exposure to U.S. wheat and the value-added technical support from USW also builds future productive relationships.

On average the past five marketing years, South Korean millers have imported about 56.7 million bushels (1.54 million metric tons) of U.S. HRW, HRS, SW and SRW wheat per year.

USW Baking Technogist Shin Hak Oh lecturing to Korean food industry students on U.S. wheat and milling technology

USW Baking Technogist Shin Hak Oh lecturing to Korean food industry students on U.S. wheat and milling technology

U.S. Soft Wheat Best for Cookies, Cakes

USW Cape Town sent six participants from a large South African food company to a specialty soft wheat flour course at the Wheat Marketing Center in Portland, Ore., earlier in 2022. The course focused on cookies, crackers, and cakes made with flour from SRW and SW compared to flour from local and imported hard wheat that is used in South Africa. The participants also visited local grocery stores to gain insight into the many, varied U.S. products made from soft wheat flours.

USW Cape Town Regional Director Chad Weigand accompanied the food industry professionals to the course. He said participants were very impressed with the course results and comparative product quality, and he expected the company to begin testing products made with U.S. soft wheat flour.

Read more here about the South African wheat market.